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PPWSA up again, with retail buyers moving in

120419_01

The price increase for Phnom Penh Water Supply Authority shares maxed out after an hour of trading yesterday morning, the second day of operations on the Cambodia Securities Exchange.

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PPWSA closed up 4.84 per cent yesterday at 9,750 riel (US$2.44), climbing from 9,300 the day before, as an increasing number of retail investors bought into the company.

A total of 488,528 shares were traded.

Daily price increases or decreases are capped at 5 per cent, according to regulations.

Retail investors would be interested in short-term cash flow and would add to market activity as prices continue to climb, ACLEDA Securities president and managing director Svay Hay said yesterday in an email.

Despite the amount of retail interest in the stock during the first two days of trading, Han Kyung-tae country head at Tong Yang Securities Cambodia, PPWSA’s underwriter, said there was significant interest from institutions.

“We have received many buy-and-sell orders from institutional investors.”

Far more investors looked to buy than sell yesterday, a liquidity issue common on new exchanges, Han Kyung-tae said.

For some time, supply and demand of the shares, not PPWSA’s performance, will be the main determining factor in the price of the shares.

“I would expect the price to fluctuate highly for the next few weeks and even months,” he said.

PPWSA prices increased by nearly 50 per cent on Wednesday, the CSX’s opening day.

The large but expected gains for PPWSA were a positive signal to Telecom Cambodia, which plans to list later this year.

“They were very encouraged by the first-day performance of the stock,” Han Kyung-tae said. Tong Yang is underwriting Telecom Cambodia’s initial public offering.

To contact the reporter on this story: Don Weinland at don.weinland@phnompenhpost.com

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